Answer:
Rodriguez Corporation
Journal Entries:
a. Debit Cash $176,900
Credit Common Stock $128,000
Credit Additional Paid-in Capital $48,900
To record the issue of 16,000 shares at $8 par value.
b. Debit Cash $176,900
Credit Common Stock $176,900
To record the issue of 16,000 shares at no par or stated value.
c. Debit Cash $176,900
Credit Common Stock $64,000
Credit Additional Paid-in Capital $112,900
To record the issue of 16,000 shares at $4 state value.
1. Issue of 16,000 shares of no par, no stated value common $94,900 cash.
Journal Entry:
Debit Cash $94,900
Credit Common Stock $94,900
To record the issue of 16,000 shares at no par or stated value.
2. Record the issue of 16,000 shares of $2 stated value common stock for $94,900 cash.
Journal Entry:
Debit Cash $94,900
Credit Common Stock $32,000
Credit Additional Paid-in Capital $62,900
To record the issue of 16,000 shares of $2 stated value for cash.
Explanation:
a) Data and Calculations:
Number of common stock shares issued = 16,000
Cash collected from the issue = $176,900
Date of issue = February 20.
b) When shares are issued at no par or stated value, the corresponding credit for the Common Stock account equals the cash realized. When the par value is less than the issued price, the corresponding credit above the par value is credited to the Additional Paid-in Capital account.
